Ask HN: Security deposit for appointment reservation as a service?
5 comments
If I'm not wrong opentable does this in some cases, so it should be possible. Another service that I think does it is mindbodyonline.
I'm not sure the "you can cancel a cc payment" still holds, at least in my experience in the US. If I want I can certainly cancel a payment, but my cc would be blocked and a new one issued, which is a real pita for a small overcharge.
I guess as a user, I'd prefer to leave a downpayment if it's a service I use semi-regularly. For example I'm ok with a restaurant because I use opentable often, or I'd be ok if my yoga studio or alike charges me once for not showing up, because I go there weekly. For a service that I was supposed to use once, I didn't show up, and I have no plans to use again, I'd certainly try to put more effort to get my money back.
So, to your idea, I'd start exploring providers that establish a recurring rapport with their clients.
I'm not sure the "you can cancel a cc payment" still holds, at least in my experience in the US. If I want I can certainly cancel a payment, but my cc would be blocked and a new one issued, which is a real pita for a small overcharge.
I guess as a user, I'd prefer to leave a downpayment if it's a service I use semi-regularly. For example I'm ok with a restaurant because I use opentable often, or I'd be ok if my yoga studio or alike charges me once for not showing up, because I go there weekly. For a service that I was supposed to use once, I didn't show up, and I have no plans to use again, I'd certainly try to put more effort to get my money back.
So, to your idea, I'd start exploring providers that establish a recurring rapport with their clients.
Thank you for the input, especially the cancellation of CC payments (" Stop payments "). Apparently it is now 15-35$ depending on the institute.
Unfortunately from what i could tell the recurring customers arent really the problem, so they likely wont need a downpayment until they missbehave. Its more a question of how to deal with first timers who never become customers but eat up time slots. The down payments also wont make up losses in revenue (they would have to be too high) but would be more aimed at reducing the number of no-shows. So it would have to be aimed at those most incentivized to back out.
edit: The more i think about it, the more i am just describing an over complicated upfront down payment for first time customers. Thanks for pushing me to that conclusion.
Unfortunately from what i could tell the recurring customers arent really the problem, so they likely wont need a downpayment until they missbehave. Its more a question of how to deal with first timers who never become customers but eat up time slots. The down payments also wont make up losses in revenue (they would have to be too high) but would be more aimed at reducing the number of no-shows. So it would have to be aimed at those most incentivized to back out.
edit: The more i think about it, the more i am just describing an over complicated upfront down payment for first time customers. Thanks for pushing me to that conclusion.
Totally - I meant it from your pov to make yours a sustainable business you prob want to look for service providers with recurring customers. With the understanding, like you said, that the main need is for the new customers.
At my last company we made software to help people hosting tourism-related activities take reservations. We always told them:
1. Taking payment up front is generally good. You get fewer cancellations, and earn more money.
2. Keeping those payments when people cancel is bad, you get unhappy customers and you lose CC disputes.
The last point is important. Not only do you get charged by the payments processor even when you win the dispute, you actually lose disputes frequently even when you do everything right. It’s just not worth it, and anyway the simple act of prepaying will do the most to limit no shows and cancellations.
1. Taking payment up front is generally good. You get fewer cancellations, and earn more money.
2. Keeping those payments when people cancel is bad, you get unhappy customers and you lose CC disputes.
The last point is important. Not only do you get charged by the payments processor even when you win the dispute, you actually lose disputes frequently even when you do everything right. It’s just not worth it, and anyway the simple act of prepaying will do the most to limit no shows and cancellations.
As far as i can tell there are 3 major problems
1) customers being able to cancel their deposit payment through their payment processor
2) legal nightmare of who owns what when. As far as i recall its highly problematic to hold funds for somebody
3) legality and taxes
I think it is something that would be best solved with crypto (no this time for real) and having the default be that the depositor gets his money back. But that leaves the entry hurdle (and cost in and out of what ever coin) as well as fluctuations in price.
1) customers being able to cancel their deposit payment through their payment processor
2) legal nightmare of who owns what when. As far as i recall its highly problematic to hold funds for somebody
3) legality and taxes
I think it is something that would be best solved with crypto (no this time for real) and having the default be that the depositor gets his money back. But that leaves the entry hurdle (and cost in and out of what ever coin) as well as fluctuations in price.
Are there any services for this? I would think something like making a down payment you get back (QR code the service provider scans?) if you show up minus a processing fee. However the kind of people who pull stuff like this are also likely to exploit payment services to get their deposit back. So doing this on credit cards would be a nightmare. Is this the reason it doesnt exist? Or are there services like this?